Former Grafton State Hospital sale possible payday for town

By Lisa Redmond

Tuesday

Apr 14, 2020 at 11:01 AMApr 14, 2020 at 11:01 AM

GRAFTON – The town has received three qualifying bids ranging from $1.2 million to $2 million to transform 8.8 acres at the former Grafton State Hospital site next to the Massachusetts Bay Transportation Authority (MBTA) station as part of creating a transit-oriented village in North Grafton.

Last December, the town invited commercial real estate development firms with experience in historic preservation, mixed-use development and affordable housing to bid on the Pine Street parcel.

While Town Administrator Timothy McInerney declined to name the companies that bid on the property, he provided some details of the bids. The bids are:

Group 1: $1.2 million bid with plans to build 220 units, but with a 15-year, 75% Tax Increment Financing that uses public financing as subsidy for redevelopment, infrastructure and other community-improvement projects.

Group 2: $1.72 million bid to build 306 units.

Group 3: $2 million bid to building 177 units of which 150 would be affordable housing. The group would need the housing trust assistance. This group already owns a 10,500-square foot parcel in the area.

This is “good news,’’ Mr. McInerney told the select board at its April 7 meeting.

Although no winning bidder has been chosen as yet, Mr. McInerney said he wanted to keep the board updated on the status of the property.

This property was recently acquired by the town under a sales partnership agreement with the state with the goal of marketing it to a private developer. When the land is sold, the state and town share the net sale proceeds.

Located near the Grafton MBTA commuter rail station, the town is seeking to develop a transit-oriented village that aligns with the North Grafton Transit Village Master Plan. The town adopted 40R zoning that requires a mixed-use development with a minimum of 20 units of multi-family housing per acre.

The site can be connected to the Grafton water district, municipal sewer, natural gas and electric.

The redevelopment of the Pine Street site is a “unique opportunity,” to create a transit village centered around the Grafton MBTA train station with opportunities for office, retail, restaurants, and high-density housing, according to town officials.

The Grafton MBTA commuter train station is one of the last options on the Worcester/ Boston train line to build a signature project reflecting the history of the Grafton State Hospital with the amenities of modern day living with access to jobs, shops, entertainment and open space, officials said.